Crony Capitalism

By: Mark Hyman

Giant construction firmÂ Tutor-Perini had $8.5 billion inÂ revenue the lastÂ two years.Â The California-based company has received billions of dollars in public works projects at the state and federal level.

But several divisions of the company have faced fraud and improper billing allegations since the 1990s.Â A typical claim is the company underbids competition then makes up the difference inexorbitant cost overruns.

It has been accused on multiple occasions of usingÂ front companies to bypass minority contracting rules. It has paid fees,Â fines andÂ settlements in cases all across the country.

Only weeks ago, a division president wasÂ convicted of fraud and conspiracy to launder money involving contracts in New York.